Income Verification

• When you complete an application for a new mortgage, you must disclose your annual income. Some lenders will require verification of your income before offering you a pre-approval. However, other lenders may grant a pre-approval that is subject to income verification. If you lose income or can't provide satisfactory documentation of your income before closing, the lender will deny your mortgage application. If you are self-employed, the lender may deny your application if he discovers that your tax returns show less income than you reported.
  
  

Employment Verification

• You must provide the lender with evidence of employment when you apply for a loan. Most lenders will verify your employment before offering a pre-approval, as well as 30 days before closing. If you lose your job before the second employment verification, the lender will deny your application. If you are self-employed, the lender may deny your application if he discovers that your business has failed since your pre-approval.
  
  

Appraisal and Inspection

• Most pre-approvals are subject to appraisal of the home you intend to purchase. They may also be subject to a home inspection. If a lender pre-approves you for the purchase of a certain home and the home fails inspection, the lender will deny your mortgage. He may also deny your mortgage if the home appraises for less than the purchase price.
  
  

Undisclosed Or Inaccurate Information

• Lenders offer pre-approvals based on the information you provide on your application. If the lender later discovers that you have liabilities or debts you didn't disclose, he may deny your mortgage application. If you promised a cosigner but weren't able to provide one, the lender will typically deny your loan. He may also deny your application if he discovers that you lied about your income, employment, down payment or credit history.